In monopolistic competition, a firm has a limited degree of "price-making" ability. This means that the firm will
A. set price above marginal cost.
B. set price equal to marginal cost.
C. always earn an economic profit.
D. produce at minimum average total cost.
Answer: A
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The regular earnings profile of an individual throughout his or her lifetime is
A) the Lorenz curve. B) the age-earnings cycle. C) wealth. D) income-in-kind.
Refer to the following graph. The price of capital (r) is $20.
What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost?
A. 60K, 20L B. 110K, 10L C. 42K, 52L D. 10K, 110L E. 90K, 60L
When an investor buys a corporate bond, the ________ is a loan to the corporation
A) interest on the bond B) principal of the bond C) bond's dividend payments D) coupon payment
Wendell can sell five motor homes per week at a price of $22,000. If he lowers the price of motor homes to $20,000 per week he will sell six motor homes. What is the marginal revenue of the sixth motor home?
A) $10,000 B) $12,000 C) $20,000 D) $22,000